HCM 416 FINANCE FINAL UNITS 1-3 EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Accounting Concerns the
measurement, in financial terms, of events that reflect the resources, operations, and
financing of an organization.
Financial Management provides the
theory, concepts, and tools necessary to help managers make better financial
decisions.
The primary role of finance within businesses is to
plan for, acquire, and utilize resources to maximize the efficiency and value of the
organization.
Finance activities include
Planning and budgeting
Financial reporting
Capital investment decisions
Financing decisions
Working capital management
Contract management
Financial risk management
Four major categories of business organization
, Proprietorship
Partnership
Corporation
Hybrid forms
Proprietorships and Partnerships ADVANTAGES
Ease of formation
Subject to few regulations
No corporate income taxes
Proprietorships and Partnerships DISADVANTAGES
Limited life
Difficult to transfer ownership
Unlimited liability
Difficult to raise capital
Corporation ADVANTAGES
Unlimited life
Easy transfer of ownership
Limited liability
Ease of raising capital
Corporation DISADVANTAGES
Cost of formation and reporting
Double (or triple) taxation for investor-owned corporations
Limited Partnership (LP)
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Accounting Concerns the
measurement, in financial terms, of events that reflect the resources, operations, and
financing of an organization.
Financial Management provides the
theory, concepts, and tools necessary to help managers make better financial
decisions.
The primary role of finance within businesses is to
plan for, acquire, and utilize resources to maximize the efficiency and value of the
organization.
Finance activities include
Planning and budgeting
Financial reporting
Capital investment decisions
Financing decisions
Working capital management
Contract management
Financial risk management
Four major categories of business organization
, Proprietorship
Partnership
Corporation
Hybrid forms
Proprietorships and Partnerships ADVANTAGES
Ease of formation
Subject to few regulations
No corporate income taxes
Proprietorships and Partnerships DISADVANTAGES
Limited life
Difficult to transfer ownership
Unlimited liability
Difficult to raise capital
Corporation ADVANTAGES
Unlimited life
Easy transfer of ownership
Limited liability
Ease of raising capital
Corporation DISADVANTAGES
Cost of formation and reporting
Double (or triple) taxation for investor-owned corporations
Limited Partnership (LP)
